Practice Question 22 When accounting for asset retirement obligations under ASPE, O Costs included as capital assets are both ARO-related costs resulting from the acquisition of the asset and its subsequent use in producing Inventory. The interest accrued on the asset retirement obligation is recorded as interest expense. The company recognizes costs of both legal and constructive obligations. O Costs included as capital assets are only those related to the acquisition of the asset, not those related to the subsequent production of goods or services